FINANCIAL PERFORMANCE REVIEW (CONT’D) Revenue generated from our own vessels remained the primary contributor to earnings in FYE 2025, amounting to RM366.5 million or 85.1% of our total revenue. However, this represented a decrease of RM113.1 million or 23.6% compared to FYE 2024. The reduction was mainly due to lower chartering revenue, resulting from reduced utilisation levels and a decline in average DCR for AWBs. Our own vessels recorded 2,966 chartered days with a utilisation rate of 63.1% in FYE 2025, compared to 3,381 chartered days with a utilisation rate of 80.4% in FYE 2024. The weaker utilisation reflected subdued demand in the local OSV market, which was affected by reduced offshore activities from PACs, uncertainties in the local oil and gas environment, as well as the softening of global average oil prices. Chartered days were also impacted by higher maintenance downtime in the first half of 2025, as 4 of our vessels underwent dry docking for their special surveys. The lower chartered days consequently resulted in reduced catering revenue, as fewer passengers were served on board during the financial year. Against the backdrop of these market conditions, revenue generated from third-party vessels also decreased by RM143.6 million or 69.2% from RM207.6 million in FYE 2024 to RM64.0 million in FYE 2025. This decline was mainly due to weaker demand in the local OSV market, which resulted in fewer chartered days as we reduced our chartering of third-party vessels, strategically prioritising our own vessels. Thirdparty vessels recorded 1,067 chartered days in FYE 2025, compared to 2,374 chartered days in FYE 2024. The reduction reflected our cautious approach and strategic focus on deploying our own vessels, while overall market conditions remained subdued amid a moderation of local offshore activity due to the various factors as discussed above. As a result of the lower revenue, our GP decreased by RM157.1 million or 45.9% from RM342.0 million in FYE 2024 to RM184.9 million in FYE 2025. Our GP margin declined from 49.8% in FYE 2024 to 42.9% in FYE 2025, mainly due to a lower number of chartered days and reduced Revenue by Geographical Segments of Customers Malaysia, RM397.5 mil, 92.3% Malaysia, RM687.2 mil, 100.0% Overseas, RM33.0 mil, 7.7% FYE 2025 FYE 2024 utilisation rates and average DCR for our own vessels. Additionally, the higher quantum of reduction in GP compared to reduction in revenue was also due to costs incurred by us during vessel off-hire periods (i.e., when the vessel is not being utilised) comprising berthing charges, crew and fuel costs. In FYE 2025, our Group also recorded a total other income of approximately RM38.9 million, which was contributed mainly from the RM25.7 million gain on disposal of Keyfield Lestari which was completed in June 2025 and interest and investment income. We also recognised the writeback of allowance for impairment losses on trade receivables amounting to RM8.6 million as Vantris Energy group had repaid us in full in FYE 2025 for vessel chartering services provided to them in previous years. Corresponding with the decrease in GP, PBT and PAT also decreased by RM120.5 million or 39.6% and RM84.2 million or 37.0% respectively in FYE 2025 as compared to FYE 2024. Our PBT margin decreased to 42.7% in FYE 2025 from 44.3% in FYE 2024, while our PAT margin remained relatively stable at 33.4%, compared to 33.1% in the prior financial year. Notwithstanding the overall decline in revenue, FYE 2025 marked a pivotal milestone for our Group, as we achieved our inaugural expansion beyond Malaysia, with our customer base now extending to Singapore, China and the Middle East. This strategic expansion contributed RM33.0 million or 7.7% of total revenue for FYE 2025, while reducing the Malaysia market’s revenue share to 92.3% from 100.0% in FYE 2024. This diversification represents a positive first step towards mitigating our geographic concentration risk and positions us for a more resilient business model for the long term. 25 Annual Report 2025
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